An independent Competition and Markets Authority (CMA) inquiry group has provisionally found the proposed merger between two of the three largest corporate travel management companies, Global Business Travel Group (GBT) and CWT Holdings LLC (CWT) has the potential to substantially lessen competition.

Both companies supply travel agency services to global businesses with high travel spend and employees who travel internationally.  GBT and CWT’s customers include UK headquartered business and international businesses with significant operations in the UK.

The independent group provisionally found that the merged company would be the clear market leader, and that the loss of competition between GBT and CWT as a result of the merger would not be offset by competition from other suppliers in the market, which could lead to reduced choice and quality, and higher prices for the customers.

The evidence assessed by the Group, including share of supply estimates, bidding data, the companies’ internal documents, as well as information from customers and competitors, showed that GBT and CWT compete closely for global multinational customers, largely because of their scale and global coverage. As a result, the merged business would be, by far, the largest supplier in the market, with the second largest player around half the size of the merged business, and the remaining competitors less credible options for customers.

This investigation is the first conducted under the CMA’s revised process for Phase 2 merger investigations. The new process is designed to enable more, and earlier, opportunities for the merging companies and other businesses affected by a merger to engage with the inquiry group overseeing the investigation, as well as streamlining aspects of the investigation to the benefit of all stakeholders.

Martin Coleman, chair of the independent inquiry group assessing the deal, said:

Despite the increased use of video conferencing, business travel continues to be a necessary component for effectively doing business for many companies and a major area of expenditure. Business travel also plays an important role in the UK economy, facilitating global trade, supply chains, knowledge exchange and international investment. A cost-effective, good quality and efficient business travel sector is therefore an important underpinning element of UK productivity and economic growth.

We have provisionally found that only a small number of business travel agencies are considered capable of meeting the needs of the largest companies and this deal could reduce competition and increase costs.

On the new Phase 2 process, Martin Coleman said:

We know businesses have been keenly awaiting our incoming changes, which are designed to deliver a timely step change in aspects of the way the regime works. The effectiveness of our new process is evidenced by the additional and more open engagement we have had with the companies, and other businesses affected by this deal. This has also allowed us to make our provisional decision earlier than under the old process.

We now look forward to engaging further with the companies on our provisional decision, including meetings with the businesspeople.

The CMA invites any interested parties to respond to these provisional findings by no later than 27 November 2024.

More information can be found on the GBT / CWT case page.

Notes to editors

1. The deal is also under review by the Department of Justice in the United States.
2. New Phase 1 cases opened by the CMA after 25 April 2024 which are referred for an in-depth Phase 2 investigation are run under the new Phase 2 process.
3. All media enquiries should be directed to the CMA press office by email on press@cma.gov.uk, or by phone on 020 3738 6460.